Export Policy for Biofuels Amended

Biofuel Export from SEZ and EoUs Allowed for Fuel as well as Non-Fuel without any Restrictions when produced using only imported Feed Stock

The government on Wednesday, 22 March, 2023 said the export of biofuel from special economic zones and export oriented units are allowed for fuel as well as non-fuel purposes without any restriction, if the biofuel is produced by using imported feed stock. On August 28, 2018, the government had imposed restrictions on export of biofuels within days of putting similar conditions for its imports.

A licence is required for both exports and imports of biofuels. Biofuels include ethyl alcohol, petroleum oil and oils obtained from bituminous minerals, bio-diesel and mixtures.

The Directorate General of Foreign Trade (DGFT) has amended that notification of 2018 "to the extent that export of biofuel from special economic zones/export oriented units, are allowed for fuel as well as non-fuel purpose without any restriction when produced using only imported feed stock".

Special economic zones and export oriented units are meant specifically for export purposes.

[DGFT Notification No. 62/2015-2020 dated 22 March, 2023]

Effect of this Notification: The Notification no. 29/2015-20 dated 28.08.2018 is amended to the extent that Export of Biofuel from Special Economic Zones (SEZ)/ Export Oriented Units (EoUs), are allowed for Fuel as well as Non-Fuel purposes without any restriction when produced using only imported feed stock.

Subject: Amendments in Export Policy of Bio-fuels under Chapter 27 of Schedule 2 (Export Policy) ITC (HS) Classification of Export and Import.

S.O. (E): In exercise of powers conferred by Section 3 read with section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy. 2015-20, the Central Government hereby amends Notification No. 29/2015-20 dated 28.08.2018.

2. The revised policy conditions of Bio-Fuels under Sl. No. 115A, 115B and 115C under Chapter 27 of Schedule 2 of ITC (HS) Classification of Export Import Items will be as follows:

SNo.	Tariff Item HS Code	Unit	Item Description	Present Policy	Present Policy Condition	Revised Policy Condition
115A	2207 20 00	Kg/u	Ethyl alcohol and other spirits, denatured, of any strength	Restricted	Export is permitted under license only for non-fuel purposes.	Export is permitted under license only for non-fuel purposes. However, Export of Biofuel from Special Economic Zones (SEZ)/ Export Oriented Units (EoUs), are allowed for Fuel as well as Non- Fuel purposes without any restriction when produced using only imported feed stock.
115B	2710 20 00	Kg/u	Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, containing biodiesel, other than waste oils.	Restricted	Export is permitted under license only for non-fuel purposes	Export is permitted under license only for non-fuel purposes. However, Export of Biofuel from Special Economic Zones (SEZ)/ Export Oriented Units (EoUs), are allowed for Fuel as well as Non-Fuel purposes without any restrictions when produced using only imported feed stock.
115C	3826 00 00	Kg/u	Biodiesel and Restricted mixtures thereof, not containing or containing less than 70% by weight of petroleum oils and oils obtained from bituminous minerals.	Restricted	Export is permitted under license only for non-fuel purposes	Export is permitted under license only for non-fuel purposes. However, Export of Biofuel from Special Economic Zones (SEZ)/ Export Oriented Units (EoUs), are allowed for Fuel as well as Non-Fuel purposes without any restrictions when produced using only imported feed stock.